The Renewables Infrastructure Group (TRIG) - New rating

The Renewables Infrastructure Group is a new London-listed investment company, raising £300 million for a launch in July 2013. It will be fully invested at launch in a diversified portfolio of 14 onshore wind and 4 solar PV energy assets in the UK, France and Ireland. It targets a 6.0p dividend per annum increasing with inflation.

The investment manager is InfraRed Capital Partners (which also manages HICL Infrastructure plc). The operations manager is Renewable Energy Systems (part of the Sir Robert McAlpine group of companies).

The fund is fully invested at launch so the dividends should quickly be able to reach the target of 6p per annum. However the assets are not all new with completion dates ranging from 2000 to 2013 and some are as small as 4 to 5 MW. Initially 75% of revenue will be guaranteed and dividends are initially covered 1.4x by cash flow. The company will need to reinvest the surplus to sustain the fund's valuation. Both sets of managers are well resourced and have a long pedigree in developing, operating and sourcing infrastructure projects.

We have given The Renewables Infrastructure Group a new three-star rating.

The value of your investments and the income from them can go down as well as up, and you can get back less than you originally invested. Past performance or any yields quoted should not be considered reliable indicators of future returns.

Funds may carry different levels of risk depending on the industry sector(s) in which they invest.

Different funds carry varying levels of risk depending on the geographical region and industry sector in which they invest. You should make yourself aware of these specific risks prior to investing.

Due to their nature, specialist funds can be subject to specific sector risks. Investors should ensure they read all relevant information in order to understand the nature of such investments and the specific risks involved.

Fund manager

InfraRed Capital Partners

Date

12/07/2013

Fund rating

The value of your investment can go down as well as up, and you can get back less than you originally invested.

Past performance or any yields quoted should not be considered reliable indicators of future returns. Restricted advice can be provided as part of other services offered by Bestinvest, upon request and on a fee basis. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.